Author Question: Ricardian equivalence is the proposition that it does not matter whether government expenditure is ... (Read 78 times)

serike

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Ricardian equivalence is the proposition that it does not matter whether government expenditure is financed by taxes or by issuing debt.
 
  Indicate whether the statement is true or false

Question 2

If the opportunity cost of working outside the home decreases then it is likely that ________, assuming all else equal.
 
  A) there will be a rightward shift in the labor supply curve
  B) there will be an upward movement along the labor supply curve
  C) there will be a downward movement along the labor supply curve
  D) there will be a leftward shift in the labor supply curve


ErinKing

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Answer to Question 1

TRUE

Answer to Question 2

A



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